Deutsche Beteiligungs (DBAN) AI Stock Analysis

• Market Cap: €485.17M
• Dividend Yield: 4.99%
• Average Volume (3M): 17.57K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.84
• Revenue Growth: -17.47%
• EPS Growth: 76.28%
• Country: DE
• Employees: 97
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): <0.01
• Shares Outstanding: 18,804,993
• 10 Day Avg. Volume: 10,242
• 30 Day Avg. Volume: 17,568
• PEG Ratio: -0.18
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 4.12
• P/FCF Ratio: 38.12
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €36.54
• Price Target Upside: 41.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: €26.00 ▲(0.78% Upside)

Deutsche Beteiligungs' stock score is primarily influenced by its financial performance challenges, including declining revenues and profitability. However, the technical analysis suggests moderate bullish momentum, and the valuation is attractive with a reasonable P/E ratio and high dividend yield. These factors contribute to a balanced outlook, with financial performance being the most significant concern.

Positive Factors

Business Model Strength

DBAN's focus on strategic equity stakes in medium-sized enterprises allows it to leverage its expertise in enhancing value, providing a durable competitive advantage in private equity.

Revenue Model

The dual revenue model of management and performance fees provides a stable income stream, aligning company success with the performance of its investments, which is vital for long-term sustainability.

Industry Focus

Targeting medium-sized enterprises in a stable economic region allows DBAN to capitalize on growth opportunities and maintain a strong market position in the asset management industry.

Negative Factors

Revenue Decline

The decline in revenue and profitability indicates potential issues in investment performance or market conditions, which could impact long-term financial health if not addressed.

Cash Flow Volatility

Negative operating cash flow suggests operational inefficiencies and could limit DBAN's ability to reinvest in growth opportunities, affecting long-term sustainability.

Operational Challenges

Operational challenges reflected in negative profit margins highlight inefficiencies that need addressing to improve profitability and shareholder returns over time.

Deutsche Beteiligungs Business Overview & Revenue Model

Company Description

Deutsche Beteiligungs AG is a private equity firm specializing in direct and fund of fund investments. Within direct investments the firm specializes in expansion capital, management buyout, middle market, growth capital, add-on acquisitions, bridge financing, management buy-ins for experienced executives, corporate spin-offs, succession arrangements and generational transition in a family-owned business, small and medium-sized companies and pre-IPO stage investments. Within fund of fund investments the firm invests in private equity funds. It does not invest in start-up and early stage companies. The firm prefers to invest in automotive suppliers, industrial, mechanical and plant engineering, businesses develop, building supplier, measurement and automation technology, specialty chemical, support service providers, printing, media, broadband/telecommunication, IT services/software, healthcare and packaging sectors. It also prefer to invest in manufacture industrial components for very different customer sectors, produced machines and plants for various customer sectors, industrial support services, and logistics. It have accessed business models and invested very successfully in other sectors as well. The firm primarily seeks to invest in companies headquartered or having significant business relationships in Germany Mittelstand, DACH (Austria, Switzerland and Germany) France, Netherlands, United States of America, European neighboring countries, and in German speaking European countries. Within European Emerging Markets, it prefers to invest in Czech Republic, Hungary, Poland, and Slovakia. The firm typically invests between €10 million ($11.07 million) and €75 million ($105.61 million) in companies with revenues between €30 million ($55.33 million) and €500 million ($704.12 million) and enterprise value between €35 million ($35.26 million) and €300 million ($422.47 million), but may also consider investments in smaller companies or participating in larger transactions. In individual instances, it also prefers structure transactions, in which the enterprise value exceeds this range and which require equity capital investments of up to €200 million ($235.19 million). It can also co-invest with other firms. The firm seeks to take majority or minority stakes in its portfolio companies. It prefers to invest in split-offs of peripheral activities from large corporations, a sale from the portfolio of another financial investor, and a capital requirement to fund a company's growth. The firm seeks to take seats on the portfolio companies' advisory councils or supervisory boards. It typically holds its investment for a period of eight years. Deutsche Beteiligungs AG was founded in 1965 and is based in Frankfurt am Main, Germany and additional offices in milan, Italy.

How the Company Makes Money

Deutsche Beteiligungs generates revenue primarily through management fees and performance fees associated with its private equity funds. The company raises capital from institutional investors, which is then invested in selected portfolio companies. Revenue is derived from management fees based on the committed capital and performance fees that are contingent on achieving certain return benchmarks (carried interest) from successful exits of investments. Additionally, DBAN may receive advisory fees related to its investment activities and strategic consulting services provided to its portfolio companies. The company's earnings are significantly influenced by the performance of its investments, the overall market conditions, and the success of its partnerships with portfolio companies and co-investors.

Deutsche Beteiligungs Financial Statement Overview

Summary

Deutsche Beteiligungs demonstrates a solid financial position with zero debt and a strong equity base. However, the income statement reflects revenue volatility and profitability challenges, albeit with some improvement in net margins. The cash flow statement highlights improved cash generation but also indicates potential volatility in cash flow activities. Overall, the company shows financial resilience but needs to address revenue and profitability fluctuations to enhance its financial health further.

Income Statement

The income statement shows a significant volatility in revenue and profitability. The revenue growth rate is negative over the past year, with total revenue declining from 155.44M to 107.61M. Gross profit margin is consistently at 100% due to no reported cost of goods sold. Net profit margin improved to 44.2% in the latest period from 68.06% previously, indicating some recovery. However, the lack of EBIT and EBITDA figures in TTM data limits profitability assessment.

Balance Sheet

The balance sheet is robust with zero total debt, showcasing financial stability and a strong equity base. The debt-to-equity ratio is 0, reflecting zero leverage. The equity ratio is strong at 75.36%, suggesting a healthy financial structure. Return on equity stands at 6.9% in the latest period, showing decent returns on shareholders' investments.

Cash Flow

Operating cash flow has improved, with a positive free cash flow of 12.33M, representing a significant increase of 43.44% from the previous year. The operating cash flow to net income ratio is 0.27, indicating cash generation efficiency. Cash flow stability is a positive aspect, although fluctuations in investing and financing cash flows are noted.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.33M	114.07M	160.76M	-52.56M	224.62M	17.28M
Gross Profit	36.52M	107.77M	157.44M	-53.69M	223.13M	16.48M
EBITDA	-26.34M	55.46M	110.62M	-94.44M	186.94M	-14.37M
Net Income	-26.87M	47.51M	105.78M	-97.56M	185.13M	-16.76M
Balance Sheet
Total Assets	892.16M	913.69M	708.27M	646.41M	734.95M	474.59M
Cash, Cash Equivalents and Short-Term Investments	40.75M	23.97M	20.02M	19.16M	37.74M	18.37M
Total Debt	193.21M	139.00M	13.14M	42.45M	4.10M	17.82M
Total Liabilities	266.08M	225.33M	38.89M	66.95M	36.19M	51.06M
Stockholders Equity	626.09M	688.36M	669.38M	579.46M	698.76M	423.53M
Cash Flow
Free Cash Flow	-18.56M	12.33M	8.60M	28.66M	-7.73M	-7.18M
Operating Cash Flow	-17.82M	13.04M	9.35M	29.54M	-7.64M	-6.70M
Investing Cash Flow	-3.71M	-104.45M	48.67M	-57.67M	-47.00M	-8.38M
Financing Cash Flow	12.89M	95.35M	-57.16M	9.56M	74.00M	-10.49M

Deutsche Beteiligungs Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DBAN, the sentiment is Positive. The current price of 25.8 is above the 20-day moving average (MA) of 25.14, above the 50-day MA of 24.50, and above the 200-day MA of 24.47, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 63.86 is Neutral, neither overbought nor oversold. The STOCH value of 82.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:DBAN.

Deutsche Beteiligungs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPCK	73 Outperform	€175.54M	9.48	14.53%	5.53%	1.42%	8.56%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
B7E	63 Neutral	€77.16M	3.78	8.40%	3.71%	-29.22%	―
DBAN	61 Neutral	€485.17M	15.85	4.65%	4.99%	-17.47%	76.28%
MUX	61 Neutral	€711.59M	18.55	4.23%	6.77%	14.56%	―
BKHT	50 Neutral	€175.14M	-3.01	―	1.41%	8.80%	-1561.66%
A7A	48 Neutral	€138.78M	―	―	―	―	―